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05.05.202504:15:59UTC+00Indonesia Q1 GDP Growth Weakest in 3-1/2 Years

Indonesia’s economy experienced a year-on-year growth of 4.87% in the first quarter of 2025, which was marginally lower than the anticipated market forecast of 4.91% and a decline from the 5.02% growth rate recorded in the previous quarter. This rate is noted as the slowest since the third quarter of 2021. In the previous year, the nation's GDP expanded by 5.03%, which did not meet the government's official target of 5.2%. For the year 2025, the administration continues to aim for a GDP growth target of 5.2%. Recently, the Finance Minister of Indonesia cautioned that the introduction of new U.S. tariffs could potentially reduce GDP growth by 0.3 to 0.5 percentage points.

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